# In the matter of Nag Yang Shoes Pvt Ltd TCP-431-IB-2017

> NCLT judgment dated 2017-09-07. Citation: TCN-2017-NCLT-00453. The petition was initially filed before the Hon'ble High Court of Madras on 24.08.2016 under…

- **Court:** NCLT
- **Order date:** 7 Sept 2017
- **Citation:** TCN-2017-NCLT-00453
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nag-yang-shoes-pvt-ltd-tcp-431-ib-2017-13ed2c0c

## Summary

### Background

The petition was initially filed before the Hon'ble High Court of Madras on 24.08.2016 under Sections 433 (e) & (f), 434 (i) (a) and 439 (i) (b) of the Companies Act 1956. After the enforcement of the Insolvency and Bankruptcy Code, 2016, the case was transferred to the National Company Law Tribunal (NCLT), Chennai, and renumbered as TCP/431/(IB)/CB/2017. The petition was treated under Section 9 of the Insolvency and Bankruptcy Code, 2016.

## Facts

The Operational Creditor, SSA & Company, claimed an outstanding debt of Rs. 1,52,51,777.85 from the Corporate Debtor, Nag Yang Shoes Pvt. Ltd. The Corporate Debtor admitted liability to the extent of Rs. 1,49,04,939/-. The Operational Creditor supplied adhesive tapes and allied products, supported by invoices. A statutory notice was sent on 02.06.2016. The Corporate Debtor replied on 16.06.2016, expressing readiness to pay after verification and sorting out quality issues, but no quality issues were raised before the notice. The Corporate Debtor filed a counter, denying admission of liability and questioning the authenticity of the seal and signature. The Operational Creditor filed an affidavit and bank statement to comply with Section 9(3)(b) and (c) of the Code,

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in making payment of the outstanding debt claimed by the …

**Ratio:** The Insolvency and Bankruptcy Code, 2016, provides a framework for the resolution of

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**Reasoning:** The NCLT was satisfied that the Corporate Debtor had defaulted in making payment of the

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**Interpretation:** The court interpreted the evidence and arguments to determine whether a default

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**Application:** The court applied the provisions of the IBC to the facts, finding that the

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## Parties

- **Judges:** Ch. Mohd Sharief…; S. VIJAYARA…
- **Appellants:** SSA & CO…
- **Respondents:** Nag Yang Shoes…

## Timeline

- **2016-06-02 — Statutory…**: Operational Creditor sent a statutory notice…
- **2016-06-16 — Corporate Debto…**: Corporate Debtor replied, stating readiness to pay after verification and sorting out…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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